There will be no extension to the June 30 FBAR filing deadline for US taxpayers who are required to file an IRS FBAR (Report of Foreign Bank and Financial Accounts). FBAR forms must be submitted electronically on or before June 30, 2016 for tax year 2015. Who must file an FBAR? Any US taxpayer who holds an interest in or signatory authority for an offshore bank account, investment account or any other form of financial account must disclose all of these accounts if the accumulated total of all offshore accounts ever exceeds $10,000 in a calendar year (yes, even if it was only for a day), even if the account produces no actual income.
The failure to do so exposes the taxpayer to fines of up to $100,000 or 50% of the highest accumulated balance total for any year, whichever is higher. The IRS is also pursuing criminal tax evasion charges, resulting in a genuine risk of jail time for many offshore account holders who fail comply with FBAR reporting requirements.
All FBARs must be filed electronically through FinCEN’s BSA E-Filing System and received no later than June 30. The FBAR is not filed with a federal tax return, and any extension of your federal tax return has no effect on the fixed June 30 FBAR filing deadline.
The Panama Papers, a recent covert release of over 11 million financial and legal papers relating to tax evasion and offshore money sheltering for world leaders, and many of the rich and powerful. The IRS is scouring these documents looking for US taxpayers who have violated (in the eyes of the IRS “flaunted”) FBAR reporting requirements, and criminal tax evasion charges combined with draconian penalties and interest await. These documents not only identify who has offshore hidden assets and wealth, but how they have constructed tax shelters and shell companies to do so.
If you have any unreported, or under-reported offshore assets, accounts or income you should contact the experienced international tax attorneys at Allen Barron for a free and substantive consultation at 866-631-3470. Don’t miss the June 30 FBAR filing deadline – there is no extension.
